From the gross salary to the real one: how to model the tax changes in 2025 the lives of young employees in Romania

With the beginning of the new academic year, more and more young people will look for a job, either to cover their expenses, or to gain professional experience since the studies.

However, for many young Romanian young people entering the labor market in 2025, this emotion is now accompanied by a new reality: a fiscal landscape that is in full swing, which influences directly as it remains in the pocket at the end of the month.

Recent reforms have remodeled the tax system in Romania – from personal deductions and health contributions, to the elimination of facilities in certain sectors. The result? Young professionals must navigate through a complex mixture of rules that can make the difference between feeling supported or overwhelmed with taxation.

An advantage for the youngest employees

According to the report “The situation of young people in the European Union” for 2024, published by the European Executive Agency for Education and Culture, between 2022-2023, Romania registered the highest rate of NEET young people (who do not work, do not study and follow training programs) from the European Union, reaching 19%, increasing from 2019. At the same time, Romania is among the few Member States where the unemployment rate among young people (15–29 years) has increased, contrary to the general tendency. Also, only 40% of young Romanian are active in the labor market, which places the country among the last in the EU at this indicator.

In order to encourage the participation of young people in the labor market, among others, a special personal deduction for employees under 26 years was introduced in 2022.

Thus, young employees can now benefit from:

• 15% of the deductible gross minimum wage each month as long as the salary does not exceed 6,050 ron per month
• Plus 300 RON per month, non -taxable and without social contributions (regardless of age), as long as the gross salary based on an individual employment contract does not exceed 4,300 RON per month.

For a graduate who starts his career with a modest salary, this mechanism can mean several hundred lei at the net salary, month by month.

This measure shows that there is a recognition of the financial pressures that young people face at the beginning of the road. However, its impact is limited, because the salary threshold is relatively low, and in areas such as IT or financial, the initial salaries can quickly exceed this level.

Increasing the minimum wage: more money, but also new challenges

Starting with 2025, the gross minimum wage has increased to 4,050 RON, as part of the government's effort to support people with low incomes and to keep up with inflation.

For young people employed in fields such as retail, horeca or services, this growth translates into a slightly higher net income. Also, the higher minimum wage easily extends the area of ​​those who can benefit from the special deduction for young people.

On the other hand, for employers, increasing the minimum wage means higher costs with the workforce, which can lead to reluctance in employment or preference for short -term contracts.

End of tax facilities on sectors

For over a decade, certain sectors-such as IT, construction and agriculture-have provided consistent tax benefits. These industries have attracted young professionals not only through career opportunities, but also through higher net salaries, due to the income tax exemption and low social contributions.

Since January 2025, these facilities have been completely eliminated.

Thus, a young programmer or a construction apprentice now pays the same taxes as all other employees:

• 10% income tax
• 25% CAS (pensions)
• 10% CASS (health).

For a junior programmer with a gross salary of 6,000 RON, this change can mean more than 600 RON at the net salary compared to last year.

This sudden change has aroused dissatisfaction, especially among IT young people, a competitive sector at European level, who made their plans according to the estimated net salary.

Passive and cryptocurrency income: a new source of tax for young

More and more young people are not limited to the income from wages. In a digital economy, many of them explore alternative sources of profit, such as:

• Cryptocurrency transactions
• investments in international markets
• Freelancing platforms and digital content.

Especially cryptocurrencies have become an attractive area for young people, who see them as an opportunity to increase their long-term income.

So far, these winnings were taxed by 10%, as income from other sources. However, according to the project to amend the Fiscal Code, currently under public debate, starting January 1, 2026, the tax rate could increase to 16%.

This change comes in a context already loaded with changes, representing another example of lack of tax predictability.

What follows for young people

Romania goes through a period of accelerated fiscal changes. For young people at the beginning of the road, this can mean:

• challenges in financial planning
• greater migration to other countries with more friendly tax regimes
• But better information, as they become more attentive to the impact of taxes on their income.

While the authorities promise that these reforms will bring more equity and long -term sustainability, young people remain with the immediate question: “How much do I have in the end of the month?”

Author: Geanina Ciorâță, Senior Manager, People Advisory Services, Ey Romania

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About EY Romania

EY is one of the largest professional services companies globally, with 395,442 employees in over 700 offices in 150 countries and revenues of about 49.4 billion USD in the fiscal year concluded on June 30, 2023. Our network is integrated globally, and the resources within it help us to offer customers throughout the world.

Present in Romania since 1992, EY provides, with the help of over 1,000 employees in Romania and the Republic of Moldova, integrated audit services, fiscal, legal assistance, strategy and transactions, consultancy to multinational and local companies. We have offices in Bucharest, Cluj-Napoca, Timișoara, Iași and Chisinau. Ey Romania affiliated in 2014 to the only world -level competition dedicated to the entrepreneur, Ey Entrepreneur of the Year. The winner of the local edition represents Romania in the world final that takes place every year, in June, at Monte Carlo. In the world final, the title World Entrepreneur of the Year is granted.

Article supported by EY Romania